B.H.P.'s Profit May Be Steady

Press, Volume CIX, Issue 31922, 25 February 1969, Page 20

B.H.P. ' s Profit May Be Steady

The cost of killing the Marlin blow-out was estimated about $5 million, of which the company must pay half, said the chairman of Broken Hill Proprietary Company, Ltd (Sir Colin Syme), in the half yearly report.

Further expenditure on repairs might be incurred, he said, although it appeared that no serious structural damage was suffered by the Marlin platform. The rig was insured.

The geology of the region might make further drilling hazardous, Sir Colin Syme said, and the Marlin field would be left to settle down. However, although production plans had to be revised, the remaining four gas wells would be completed, and the company would be able to fulfill is commitments.

All other oil and gas fields were progressing well, and it was estimated that crude oil could be available for sale in the third quarter of 1969, and that the daily production would be about 280,000 barrels by the end of 1970. Referring to the company’s mineral exploration, Sir Colin Syme said that studies had shown that the nickel deposits

at Rockhampton were uneconomic, but that they might be profitable if a future plant there could also be fed from other sources.

The geology of the Mount Monger nickel deposits was complex, and much remained to be done before their value could be assessed, he said. The directors were giving further consideration to the iron ore deposits at Deepdale, in Western Australia, the report said. Australian demand for steel products continued to be reasonably good, and orders for the half-year under review were substantially higher than the corresponding previous period. However, steel continues to be imported into Australia at prices which reflected the excess of world steel-making capacity rather than costs of production, Sir Colin Syme said. In spite of shut-downs at Newcastle and Port Kembla, steel output of 1.79 m tons

was only slightly lower than last year’s figure, the report said. Total steel production rose 1.7 per cent and pig iron increased 8.2 per cent. Costs, however, continue to increase and net earnings before tax lagged a little behind those of the corresponding period (which were rather above the average for the full year) Sir Colin Syme said.